Market's Recent Declines
Put Dow Theory to Test

By

Sonoko Setaishi Dow Jones Newswires

Updated March 16, 2001 4:14 p.m. ET

NEW YORK -- Wall Street bears may have another argument for their pessimistic convictions.

The so-called Dow Theory holds that a drop by both the Dow Jones Industrial Average and the transportation average to new lows confirms a downward trend in the broader market. That bit of old-school thinking was reinforced this week, as the recent bloodshed...